Tech layoffs: How badly will the office market be hit?
large-scale layoffs announcement globally worldwide by large number of tech firms has sent a scare throughout every sectors. This is the nightmare in midst of economy recover post pandemic.
the parent company of Facebook, Meta, will layoff 11,000 employee globally. Amazon is streamlining its worldwide manpower by 20,000. CEO of Twitter, Elon Mask, has shrank the company’s manpower by sixty-six percent. Microsoft, Stripe and Salesforce have laid off 1,000 headcount, respectively, while Cisco reduced 4,100 headcount internationally. Hewlett-Packard is laying off 4,000 to 6,000 employees by 2K25. Alphabet, Google’s parent company, is looking to progressively lay off 10,000 “under-performing employee” via a new key performance indicator system (KPI) . That’s 5.3% of its 186,779 employee globally.
144,554 employees globally have been let go from 916 tech companies this year, as of Dec 6, 2k22, According to Layoffs.fyi, a layoffs tracker. From July to mid-November, the number of Singapore resident workers laid off from the tech sector climbed up to 1,270, Manpower Minister Tan See Leng told Parliament on Nov 28. Eight in 10 were in non-tech-related roles, such as sales, marketing and corporate functions.
“The tech sector is going through a rough patch right now,” says Marcus Loo, CEO of Savills Singapore. “Tech firms and start-ups may be giving up or subletting their space as the cost of borrowing has increased significantly. Investors are also more prudent about how they deploy their funds.” He expects more shadow space to emerge in the coming months.
Amazon, On the opposite hand, has signed a tenancy for a lease of 370,000 sq ft or 11 floors at IOI Central Boulevard Towers, which is scheduled to open in 3Q2K23. Amazon already occupies 100,000 sq ft of prime office space in Asia Square, another 45,000 sq ft in One George Street and 80,000 sq ft in Capital Square, according to Dunkerley. The tech giant may consolidate its real estate footprint at IOI Central Boulevard Towers when it moves in.
Meta, Facebook’s parent company, Beijing-based ByteDance, will be leasing substantial office space at IOI Central Boulevard Towers, too, says Dunkerley.
the parent company of TikTok, is taking up a further 80,000 sq ft in Capital Tower, space vacated by JP Morgan. ByteDance already occupies substantial office space in One Raffles Quay and Guoco Tower, Dunkerley points out.
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